After hearing a lot of confusion abour ruby licensing, I decided to 
summarize and offer a few SIMPLE, PAINLESS solutions for consideration.

FACT #1:  The ruby license is not well-known.  It isn't even listed as 
an OSI-approved license at http://www.opensource.org/licenses/

FACT #2:  The ruby license is frequently misunderstood as seen on 
comp.lang.ruby.

FACT #3:  There are well-known, well-understood and widely-used 
opensource licenses that Ruby can use without changing the fundamental 
rights of the author or user as provided in the current Ruby license.

Three Possible Solutions (out of many) are:

SOLUTION #1 - BSD license (very well-known, commercial-use friendly)
http://www.opensource.org/licenses/bsd-license.php

SOLUTION #2 - MIT license (even simpler but not as well-known)
http://www.opensource.org/licenses/mit-license.php

SOLUTION #3 - Creative Commons Attribution 2.0
   Here's one that is user-friendly (explanation + full legal)
   http://creativecommons.org/licenses/by/2.0/
   http://creativecommons.org/licenses/by/2.0/legalcode

   This was selected by filling out the form here:
     http://creativecommons.org/license/

OTHER SOLUTIONS:
For a HUGE list of OSI-approved licenses, see here:
   http://www.opensource.org/licenses/